PR Newswire
HOUSTON, Post Investment Group, LLC, a Los Angeles based opportunistic real estate investment firm recently announced the acquisition of two distressed multi-family projects: the 438 unit Serrano Apartments in Houston, Texas and the 300 unit Longhorn Station Apartments in Austin, Texas. These latest acquisitions serve to expand Post's distressed real estate platform. Post acquired the assets through separate joint ventures with two existing equity partners.
The two assets, though purchased separately, carried similar transaction structures characteristic of both the current real estate environment and Post's strategic directive. The properties were acquired directly from or through the special servicers, in both circumstances requiring the lender to substantially discount the outstanding principal balance of the notes and amend financing terms in favor of Post. In each case, Post will infuse significant rehabilitation and renovation capital through a focused, individualized investment thesis tailored toward short term stabilization and long term operational viability.
This method of distressed investment is a transactional direction Post has been pursuing over the past calendar year. However, until recently lenders were either unwilling or unable to discount the outstanding balance of their holdings to levels that were both in-line with market and operationally accretive. "These two acquisitions signify a discernible shift in lender expectations," remarks Jack Ehrman, Principal of Post, "in that expanded consideration is now given to the active preservation of remaining equity in lieu of blindly pursing an exit at par, an argument we have been touting for some time." In contrast to the bandwagon flock to direct note acquisition, Post has identified the foregoing as a way to capitalize on the depressed real estate market while avoiding the intangibility of loan purchases consistently void of solid underlying collateral and absent of direct operational oversight at the entity level. Mr. Ehrman goes on to add that, "While this approach may not be as lucrative on exceptional assets, it enables us to significantly reduce an investments risk-coefficient and still attain market leading returns."
The acquisitions of Houston apartments and Austin apartments increase Post's collective holdings to over 6,200 units, 1,400 of which were acquired in the second half of 2009. Jason Post, President of Post comments, "The next two to three year period will provide multiple unique and opportunistic prospects for our company." He went on to emphasize the increased importance of developing strategic relationships with lending institutions and special servicers, stating, "The processes and protections Post employs from both an operational and transactional standpoint have enabled us to further access these entities and produce constructive conversations unthinkable in prior years".
About Post Investment Group, LLC
Post Investment Group is an opportunistic real estate investment firm focused on the acquisition of multi-family assets nationwide. The company specializes is both core plus and distressed investment opportunities capitalized through private and institutional investors.
The two assets, though purchased separately, carried similar transaction structures characteristic of both the current real estate environment and Post's strategic directive. The properties were acquired directly from or through the special servicers, in both circumstances requiring the lender to substantially discount the outstanding principal balance of the notes and amend financing terms in favor of Post. In each case, Post will infuse significant rehabilitation and renovation capital through a focused, individualized investment thesis tailored toward short term stabilization and long term operational viability.
This method of distressed investment is a transactional direction Post has been pursuing over the past calendar year. However, until recently lenders were either unwilling or unable to discount the outstanding balance of their holdings to levels that were both in-line with market and operationally accretive. "These two acquisitions signify a discernible shift in lender expectations," remarks Jack Ehrman, Principal of Post, "in that expanded consideration is now given to the active preservation of remaining equity in lieu of blindly pursing an exit at par, an argument we have been touting for some time." In contrast to the bandwagon flock to direct note acquisition, Post has identified the foregoing as a way to capitalize on the depressed real estate market while avoiding the intangibility of loan purchases consistently void of solid underlying collateral and absent of direct operational oversight at the entity level. Mr. Ehrman goes on to add that, "While this approach may not be as lucrative on exceptional assets, it enables us to significantly reduce an investments risk-coefficient and still attain market leading returns."
The acquisitions of Houston apartments and Austin apartments increase Post's collective holdings to over 6,200 units, 1,400 of which were acquired in the second half of 2009. Jason Post, President of Post comments, "The next two to three year period will provide multiple unique and opportunistic prospects for our company." He went on to emphasize the increased importance of developing strategic relationships with lending institutions and special servicers, stating, "The processes and protections Post employs from both an operational and transactional standpoint have enabled us to further access these entities and produce constructive conversations unthinkable in prior years".
About Post Investment Group, LLC
Post Investment Group is an opportunistic real estate investment firm focused on the acquisition of multi-family assets nationwide. The company specializes is both core plus and distressed investment opportunities capitalized through private and institutional investors.
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